Economic news

Israeli Shekel See-Saws ahead of Key Judicial Overhaul Vote

JERUSALEM, July 24 (Reuters) - Israel's shekel see-sawed on Monday, jumping in early trade before reversing course as the country's president struggled to reach a compromise on Prime Minister Benjamin Netanyahu's contentious judicial overhaul ahead of a crucial vote in parliament.

Optimism that an accord could be reached ahead of the vote on contested changes on Monday - following mass protests from both sides on Sunday - had pushed the shekel up more than 1% versus the dollar to a rate of 3.5817.

But news that compromise talks collapsed erased the move and pushed the shekel as much as 0.3% weaker to 3.64. At 1110 GMT, the shekel had strengthened again to 3.6150.

"Dollar-shekel regained the upside traction after talks on a potential compromise regarding the judiciary reform have reportedly collapsed," said Piotr Matys, senior FX analyst at In Touch Capital Markets.

"It's not over until it's over - perhaps at least some market participants are hoping that this controversial judiciary bill could be still amended before the Knesset votes on it."

Netanyahu has been urged by Washington to reach a compromise with the opposition, but his hard-line coalition partners are pushing for the legislation to go ahead with more judicial changes to follow.

His coalition has been determined to push back against what it describes as overreach by a Supreme Court.

Since the judicial plan was announced in late January, the shekel has weakened by some 8% versus the dollar amid an increase in Israel's risk premium.

Reporting by Steven Scheer and Bansari Mayur Kamdar; Editing by James Mackenzie and Christina Fincher

Source: Reuters

To leave a comment you must or Join us

More news

Back to economic news list

By visiting our website and services, you agree to the conditions of use of cookies. Learn more
I agree